Private Money Financing
Private lenders perform a very vital function in our financial system; they fill a void that other financial institutions have decided not to lend to. Private lenders can provide loans to people that have poor or bad credit rating, even if a borrower has been turned down by other lenders. People with private money financing can provide higher ratio mortgages up to 85% when no other lender will. The main criteria that people with private money financing are looking for is the amount of remaining equity in your home, people with private money financing are the main source of financing for second and third mortgages. Most people with private money financing tend to provide loans only within a certain geographic area such as Ontario; our job is to match your needs with the proper lender.
Major Canadian lending institutions have frowned on providing mortgages to self employed people, if you own your own business you are fully aware how hard it is to get a loan from a bank. Banks will ask for a large amount of paperwork and references, the usual result is that you do not qualify since your income is not verifiable. People with private money financing understand that there are a large number of self employed people and they can afford to make monthly Hard Lender Money Mortgage Private payments. People with private money financing focus on the value of your home which is used as security, if there is enough equity in your home, people with private money financing will provide you with the money you require.
The loan to value ratio (LTV) is one of the most important indicators that people with private money financing look at when determining your loan approval. To find the loan to value (LTV) ratio on your home divide any outstanding Hard Lender Money Mortgage Private on your house by the present market value of your house, an example is a home in Ajax, Ontario with a market value of $400,000.00 and total mortgages of $300,000.00, the LTV for this house is 75%. Higher loan to value ratios above 80% will result in a mortgage with higher interest rates and possible fees. Most people with private money financing will not exceed a loan to value ratio of 90% and will usually approve mortgages with a loan to value ratio below 85%.
For most mortgage and loan transactions a private lender requires an appraisal of the house or property. Appraisers provide an independent estimate of the present value of a house or property. An appraiser will compare your house to three other similar houses that have sold in your local geographic area. Adjustments will be made for factors such as different square foot or the number of bedrooms and bathrooms in a house. The appraised value will be the amount that the mortgage or loan will be based upon, as the property owner you should make sure the house is clean and tidy before the appraisal is done so you can maximize the property value.
Hard Lender Money Mortgage Private
Our brokers strive to provide you with the best service and advice possible. We will be totally honest with you and tell you the pros and cons of all the mortgage options that are available to you. People with private money financing are an excellent source of funding when other financial institutions have turned you down. Call our brokers for more information on people with private money financing.